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Santa Cruz Was in the Linux Business, Not Just Caldera - Updated 2Xs
Tuesday, June 05 2007 @ 09:15 AM EDT

Do you recall at the March 7th hearing on IBM's Motion for a Declaratory Judgment on its 10th Counterclaim, the one about copyright infringement and the GPL, that SCO's attorney Stuart Singer told the court that Santa Cruz was the copyright holder in 2001, not Caldera, and at that time Santa Cruz was not in the Linux business?

Well, I did some deep digging and I have proof that in fact Santa Cruz was in the Linux business as far back as 1999. Would you like to see it?

First, here's what Singer told the court:

The facts here are such that IBM is just jumbling together in their submission actions taken by Caldera, actions taken by SCO and leaving out an important issue, which is who owned the copyrights in question at what time?

This is a chart -- Your Honor will recall this chart from last week, because it is the same equitable estoppel argument. The copyrights are owned by Santa Cruz all during this period of time. Santa Cruz is not in the Linux business. They argue, well, there is a few people who attended an X/OPEN conference. Those people did so as individuals. Each of those sets forth in their submission of facts is disputed in our response.

Santa Cruz which owned the copyrights was not in the Linux business during the time of 2001 when IBM decided to embrace Linux, to form the Linux technology center, to encourage others to use Linux, to copy Linux, to contribute technology to Linux, that could not possibly then be based on reliance of any action by the copyright owner.

What Caldera, a company that did own the copyrights during this time, was doing with respect to Linux cannot be any more of a basis for IBM to suggest that the copyright owner doesn't care. But if I distributed Linux or you distributed Linux and IBM said they saw us distributing Linux so it must have been okay,

Here is the evidence I have found, an article in ZDNet UK by Jason Perlow from 1999, "Unix forum cheers Linux":

Linux fever is infecting even the staunchest Unix advocates, as evidenced this week at SCO Forum in Santa Cruz, California.

While the partners involved in the Monterey Project -- the initiative between SCO, IBM, Intel, Sequent Computer and Compaq Computer to create a high-volume unified UNIX -- were upbeat on Monterey's prospects, they still had Linux on the brain....

SCO, too, has jumped on the Linux bandwagon, in spite of its role as one of the Project Monterey ringleaders. This week SCO announced its own Linux and open source professional services offering.

Many of the software vendors exhibiting at SCO Forum were demonstrating proudly Linux versions of their SCO offerings, and distributed demo CDs that ran on both platforms.

While Linux may have been the topic du jour in Santa Cruz, Monterey was a close second.

Here is another article from 2000, "SCO reorganizes, issues profit warning", by Dominique Deckmyn in ComputerWorld:

THE SANTA CRUZ Operation (SCO) warned investors late Tuesday that sales will be below analysts' estimates for its second quarter ended March 31.

A reorganization aims to increase investment in the company's Tarantella software and in Linux, and to reduce expenses in the company's core Unix server business. The California-based company expects to report "significant losses" after reorganization costs. ...

The new structure also will make it easier for each division to pursue the Linux market, Orr said. The company already has announced significant steps in the Linux market, including professional services and a version of Tarantella for Linux.

Orr said the company now intends to take portions of its UnixWare operating system and market them as layered products on top of other Unix versions and Linux. "That way, we get a bigger market for each product individually," Orr said. Programming interfaces for SCO UnixWare and Linux will be "virtually identical," he said, and added, "Increasingly, we will not care which one you use."

Orr did not say how these changes in plans and in structure will affect Project Monterey, the company's joint effort with IBM to develop a 64-bit Unix system for Intel's IA-64 architecture, and based on UnixWare and IBM's AIX technologies. He did say that a major announcement concerning Monterey is due in May.

The kindest way to put it would be that SCO gave the court misinformation.

Update: P.S. IBM announced at LinuxWorld in *1999* that it was embracing Linux, as Singer put it. As usual, Groklaw's readers have found considerably more. It was also in 1999 that IBM's Linux Technology Center started, so Singer was wrong about that too. Here's Santa Cruz's annual report for 1999, which states:

The Professional Services division of SCO offers a series of Linux-related services to help enterprise customers evaluate and manage the cost, benefits and risk of Open Source technologies...SCO Professional Services are available for SCO OpenServer, UnixWare, Tarantella, Linux and Open Source systems.

Another reader points out that the Santa Cruz executive Orr saying that the APIs in UnixWare and Linux would increasingly be "virtually identical" is relevant in that this is the substance of one of the SCO Group's claims of misuse against IBM. And here's a press release from 2000, when Santa Cruz became SUSE's "first global partner (emphasis mine):

SuSE, One of the World's Leading Linux Providers, Chooses SCO as First Global Partner

CeBIT, Hannover, Germany (February 22, 2000) - SCO (NASDAQ: SCOC) and SuSE Linux AG, one of the world's leading Linux providers, today announced an agreement to offer SCO Professional Services to SuSE customers, worldwide. The new offering, along with SCO's global reach, will help extend SuSE's growth into new markets. The agreement marks the first time SuSE Linux AG has partnered for professional services on a global level.

The SCO Professional Services offerings are designed to help SuSE's customers and resellers to get started with planning, installation, configuration, and deployment of their new SuSE Linux systems.

"We are very excited to be SuSE's first global partner and are ready to assist their customers," said David Taylor, vice president of the SCO Professional Services Division. "SuSE is especially strong in Europe and is increasing its popularity in the United States. We feel that our new offerings will give SuSE's customer throughout the world the confidence to rapidly deploy their SuSE Linux systems. This agreement, together with business initiatives with other Linux companies, increases the business opportunities for SCO's Professional Services Division and cements its role as a global leader in services for Linux."

"SuSE's customers are asking for a quality professional services offering to help deploy their systems and understand their business computing needs," said Roland Dyroff, CEO of SuSE Linux AG. "We are confident that our customers will benefit greatly from working with SCO, a global company with more than 20 years in the software and services business."

SCO, Linux, and the Open Source Movement

As a corporate sponsor of Linux International, SCO is a strong proponent of the Open Source movement, citing it as a driving force for innovation and business opportunities.

SCO has strategic alliances with LinuxMall.com, TurboLinux and Caldera and has taken equity positions in all three companies. During the last year SCO introduced new Linux and Open Source-related professional services. SCO is also a driving force in raising funds and awareness for the Linux Standard Base (LSB).

See www.sco.com/linux for more on SCO's Linux and Open Source activity.

And here's another also from 2000, where Santa Cruz teamed up with Caldera, for heaven's sake, to sell some Linux together:

CALDERA SYSTEMS AND TARANTELLA JOIN FORCES TO DELIVER LINUX WEB APPLICATION SERVER

New OpenLinux eServer and Tarantella Express Bundle Enables
Cross Platform Web Access to Applications

OREM, UT and SANTA CRUZ, CA-July 24, 2000-Caldera Systems, Inc. (Nasdaq: CALD), and Tarantella, Inc. a wholly owned subsidiary of The Santa Cruz Operation, Inc. (Nasdaq: SCOC), today announced the first bundling of Tarantella Web-enabling software in the Linux space. This solution, Caldera OpenLinux Application Server with Tarantella, provides centralized management and deployment of applications on a fast, stable and low-cost platform simplifying IT responsibilities while reducing business costs.

OpenLinux Application Server enables authorized users with a Java technology-enabled browser to run existing Windows, Linux and UNIX applications through the company's local area network or remotely through the Internet - even on a dial-up connection. In addition, companies can instantly deliver new Web-based and existing legacy applications to their users without code rewrites.

"Much of IDC's research has shown that Linux is finding a home supporting Web and network infrastructure in many organizations," said Dan Kusnetzky, vice president of system software research for IDC. "The combination of SCO's virtual user interface serverware, Tarantella, and Caldera's OpenLinux eServer allows organizations to take that one step further. Now users will be able to access applications running on Windows, UNIX or Linux as easily as the new Web-based applications."

"I know many companies who want to keep their existing infrastructure in place and yet take advantage of the low-cost, stability and reliability of OpenLinux. This specialized server allows them to do just that," said Ransom Love, president and CEO for Caldera Systems, Inc.

"I can't think of a better way to leverage your existing infrastructure than using Tarantella on OpenLinux to make applications running on multiple servers available to your employees or customers through a single Web-enabled client."

"We're pleased to team up with Caldera to promote Tarantella Express on OpenLinux eServer in a totally integrated package," said Mike Orr, president of Tarantella Inc. "We see a lot of synergy between Tarantella software and OpenLinux eServer. This bundle provides Caldera's expanding reseller channel with a powerful application server platform to offer their customers, and makes it easier to deploy their customized solutions."

Availability
Caldera OpenLinux Application Server with Tarantella includes five user licenses. Businesses may purchase additional licenses providing application access for up to 45 concurrent users per server. Enterprises requiring more than 45 concurrent users may purchase or upgrade to Tarantella Enterprise II.

OpenLinux Application Server is available July 20th. To purchase the solution, dial 1-888-GoLinux or e-mail sales@calderasystems.com or call Tech Data at 1-800-237-8931 (TD part number 404161). Caldera Systems and Tarantella, Inc. are demonstrating OpenLinux Application Server on Caldera's 12-city OpenLinux Power Solutions Tour 2000 across the U.S. and Canada, finishing in Dallas, TX on July 27th.

Caldera Systems, Inc.
Caldera Systems, Inc. (Nasdaq: CALD) is a "Linux for eBusiness" technology leader in developing and marketing successful Linux-based business solutions, including its award-winning OpenLinux, NetWare for Linux, Linux technical training, certification and support-with free 30-day phone support and on-site consulting. Caldera OpenLearning Providers offer exceptional distribution-neutral Linux training and certification based on Linux Professional Institute (LPIÔ) certification standards. Caldera Systems supports the open source community and is a leader in, and advocate of Linux Standard Base (LSB) and LPIÔ.

Caldera, Inc. was founded in 1994. Caldera Systems, Inc. was created in 1998 to develop Linux-based business solutions. Based in Orem, UT, Caldera Systems has offices and 800+ resellers worldwide. For more information, see www.calderasystems.com or in the US call 888-GO-Linux (888-465-4689).

About Tarantella
Tarantella, Inc. is a wholly owned subsidiary of The Santa Cruz Operation, Inc. which provides enabling technologies connecting clients, server-based applications, and networks. The Tarantella product line includes Tarantella Enterprise II for large companies and organizations, Tarantella Express for workgroup and departmental environments, and Tarantella ASP Edition for Application Service Providers. Tarantella products provide access to Windows, mainframe, Linux and UNIX applications, and are available today for all popular RISC and Intel processor-based UNIX servers and selected Linux servers. For more information, see www.tarantella.com.

I think we've established the point.


  


Santa Cruz Was in the Linux Business, Not Just Caldera - Updated 2Xs | 228 comments | Create New Account
Comments belong to whoever posts them. Please notify us of inappropriate comments.
Off-Topic Here
Authored by: jdg on Tuesday, June 05 2007 @ 09:25 AM EDT
Standard rules

---
SCO is trying to appropriate the "commons"; don't let them [IANAL]

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: cricketjeff on Tuesday, June 05 2007 @ 09:39 AM EDT
If TSG are truly "successors in interests" in this business surely
they have all of SCO's papers, and as such have to know what SCO was doing. Even
if they do not consciously know if they wish to be considered as the same legal
person then they must be assumed to know.
In which case "misinformation" is a rather mild description. there are
two words I would choose from, lying and perjury. These may be a little strong
but they seem to fit the facts rather better.

---
There is nothing in life that doesn't look better after a good cup of tea.

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Anonymous on Tuesday, June 05 2007 @ 09:45 AM EDT
At this point, why be kind at all?





tick tick tick

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Turing_Machine on Tuesday, June 05 2007 @ 09:49 AM EDT
In the grand scheme of BSF lies and deceit, this particular lie is almost cute.
In other cases, such a misrepresentation would be enough to get the entire
courtroom into a frenzy of accusations and actions, but here, we're looking at
sur-sur-sur-replys still trying to word-weasel around what "a linux
business" is. Just another lie to stack up with the rest.

The funny part is that by doing these outright lies, I think they're trying to
draw out the case. They know it might require rulings and pleadings to figure
out knew it was a lie, as well as what type of ramifications to expect. Maybe
the plan is to stack up so many "small" infractions, lies and
obfuscations that the case becomes too mangled to possibly understand in appeal?

---
No, I'm not interested in developing a powerful brain. All I'm after is just a
mediocre brain, something like the President of the AT&T --Alan Turing

[ Reply to This | # ]

Journalistic writings != evidence
Authored by: Anonymous on Tuesday, June 05 2007 @ 09:50 AM EDT
With respect, and I *DO* really want the snake that is SCO to squirm in court,
some article penned by a journalist does not equate to evidence. Company press
releases, balance sheets, SEC filings, interviews, THATS evidence, this I'm
afraid is little more than hearsay.

Sorry. but the same standards must apply all around .. after all MOG wrote
stuff and we'd hardly call any of that "evidence" now would we?

I'm sure you are right, I expect they were in the Linux business (pr trying to
be) in 1999 .. but I don;t think this particular evidence will be sticky
enough.

Sorry

[ Reply to This | # ]

Corrections
Authored by: bbaston on Tuesday, June 05 2007 @ 09:53 AM EDT
Nicest when title says the heart of the typo/correction.

---
IMBW, IANAL2, IMHO, IAVO
imaybewrong, iamnotalawyertoo, inmyhumbleopinion, iamveryold

[ Reply to This | # ]

1999 is not 2001
Authored by: Anonymous on Tuesday, June 05 2007 @ 10:01 AM EDT
The SCO lawyer said that in 2001 Santa Cruz was not in the linux business
"at that time". The fact that they were doing business in 1999 and
2000 does not itself make his statement false. We need to find something that
shows Santa Cruz doing business in 2001 to disprove Singers' testimony.

Don't get me wrong, I'm not a SCO supporter. I'm merely pointing out a detail.

[ Reply to This | # ]

Deep diving...there was SCOG's mistake
Authored by: Anonymous on Tuesday, June 05 2007 @ 10:13 AM EDT
So SCOG was 'deep diving' instead of 'deep digging.' That explains everything.

bkd

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Anonymous on Tuesday, June 05 2007 @ 10:28 AM EDT

Uh oh...

Programming interfaces for SCO UnixWare and Linux will be "virtually identical," he said, and added, "Increasingly, we will not care which one you use."

Is it just me or is the fact that the APIs are virtually identical the main basis of SCOs entire complaint of misuse against IBM? Hello, McFly....

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Anonymous on Tuesday, June 05 2007 @ 10:53 AM EDT
Early 2000, I was working at a SCO distributor and I had Linux Kernel
Personality beta CDs to evaluate. It was installing a copy of the RedHat and
then using that as the Linux "OS" with libraries to bridge the kernel.
Later, the same year, they announced the merge with Caldera. Next version of LKP
had a mixture but they were clearly attempting to merge the Caldera base.
Regardless, I got the CDs way before the Caldera merge.

[ Reply to This | # ]

Estoppel vs. GPL
Authored by: arch_dude on Tuesday, June 05 2007 @ 11:04 AM EDT
Santa Cruz Operation (oldSCO) was clearly in the Linux business. I think this
supports the estoppel argument.

The real killer would be evidence that oldSCO distributed Linux: This would
support the entirely separate argument that any oldSCO UNIX copyrighted material
in Linux is now released under the GPL. By the rules of agency, it might also
apply to Novell UNIX copyrighted material To show this, we would need to find
any oldSCO customer or potential customer who received a Linux CD-ROM (any
distribution) from any member of the oldSCO professional services division.
(Note: NOT a Skunkware CD-ROM: Skunkware did not include the Kernel.)

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Anonymous on Tuesday, June 05 2007 @ 11:10 AM EDT
I'm not kind when it comes to SCOX. They Purjored themselves.

[ Reply to This | # ]

But did Santa Cruz distribute Linux at the time?
Authored by: Anonymous on Tuesday, June 05 2007 @ 11:30 AM EDT

OK, maybe Stuart Singer should have said that "Santa Cruz is not in the Linux distribution business.". But still...

It appears this would only be relevant if Santa Cruz had distributed Linux at the time. Writing software for Linux is not the same thing as distributing it. Isn't that a fundamental difference in this case?

In that light, does it matter that Santa Cruz was looking at Linux as a target platform for their non-OS offerings at all in 1999, 2000, and even 2001? I think it's only relevant if they distributed Linux itself before IBM got involved.

I also found a press release from 2000 on the subject. It just mentions Tarantella runs on Linux servers (but not that Santa Cruz was distributing Linux).

[ Reply to This | # ]

2001 Interesting Year
Authored by: Anonymous on Tuesday, June 05 2007 @ 11:48 AM EDT
OldSCO were certainly providing Professional Services for Linux as early as 1999, but the question remains - did OldSCO ever sell a Linux distribution?

They were planning to start selling a Linux distribution as early as June 2000

But then the Caldera purchase of OldSCO was announced in August 2000.

And by November 2000, Caldera's existing OpenLinux product was already being rebranded as SCO OpenLinux even though the deal didn't close until the middle of 2001.

I guess you could argue that technically "the UNIX copyright holder" wasn't in the Linux distribution business until the Caldera deal closed in May, 2001.

[ Reply to This | # ]

Small Discrepancy
Authored by: Anonymous on Tuesday, June 05 2007 @ 12:03 PM EDT
Singer says IBM formed the Linux Technology Center in 2001.

IBM says 1999.

[ Reply to This | # ]

Some supporting evidence, perhaps
Authored by: DaveJakeman on Tuesday, June 05 2007 @ 12:40 PM EDT

In this PDF on SCO's website, Santa Cruz blow their own Linux trumpet:

ABOUT SCO PROFESSIONAL SERVICES
SCO's Professional Services team originates from The Santa Cruz Operation, Inc. with over 20 years of experience with UNIX and Linux technologies. This acquisition created one of the largest Linux product and services companies in the industry with unrivaled service and technical expertise.
The pdf has the Santa Cruz tree logo and is copyright 2002 Caldera International, Inc., making it pre-tSCOg.

The page Porting Open Source Software to SCO is of vague interest, if only to indicate that Ron Record came from Santa Cruz. If I recall correctly, Ron was largely responsible for producing Skunkware.

---
Only two things are infinite: the universe and human stupidity – and I'm not sure about the former. -- Einstein

[ Reply to This | # ]

"Santa Cruz which owned the copyrights was not in the Linux business during the time of 2001..."
Authored by: Alan(UK) on Tuesday, June 05 2007 @ 01:01 PM EDT
Just back from work and I do not understand what this is about yet.

At first glance it seems as if SCO is trying to deflect everyone into a detailed discussion about dates and definitions and things - when the real whopper is, "Santa Cruz which owned the copyrights".

---
Microsoft is nailing up its own coffin from the inside.

[ Reply to This | # ]

Not sure what that proves
Authored by: Anonymous on Tuesday, June 05 2007 @ 01:08 PM EDT
Since I am having serious problems parsing Mr. Singer.

Whatever he is saying doesn't sound coherent enough to be a threat, so defending
it can't be too big a deal.

[ Reply to This | # ]

"....Santa Cruz was the copyright holder in 2001..."
Authored by: tiger99 on Tuesday, June 05 2007 @ 01:15 PM EDT
The only possible room for wriggling out of a perjury charge that I can see is that the copyrights may not have transferred at the same time as the business.

Someone, please tell me that I am wrong, and show where they were transferred, to close down that very slight doubt.

If the facts are as they seem, I don't see how Singer, a practising attorney, can expect to escape severe sanctions for intentionally making a false statement to the court. But maybe US judges are more tolerant than those in the UK?

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: BobinAlaska on Tuesday, June 05 2007 @ 03:56 PM EDT
In the following two paragraphs from the article, there are two statements that seem to be conflicting.

"Santa Cruz which owned the copyrights was not in the Linux business during the time of 2001 when IBM decided to embrace Linux, to form the Linux technology center, to encourage others to use Linux, to copy Linux, to contribute technology to Linux, that could not possibly then be based on reliance of any action by the copyright owner.

What Caldera, a company that did own the copyrights during this time, was doing with respect to Linux cannot be any more of a basis for IBM to suggest that the copyright owner doesn't care. But if I distributed Linux or you distributed Linux and IBM said they saw us distributing Linux so it must have been okay,"

Note the highlighted text. Did he just say that both companies owned the copyrights? Even though we know that Novell still owned them!

---
Bob Helm, Juneau, Alaska

[ Reply to This | # ]

And SCO Source revenue for Q2 2007 is...
Authored by: Anonymous on Tuesday, June 05 2007 @ 04:39 PM EDT
...Zarro! Exactly zarro!

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Anonymous on Tuesday, June 05 2007 @ 04:47 PM EDT
I have only one thing to say:

OpenServer was a good product, SCO ibiblio.orged up while they could have become
the "new redhat" (or whatever that means) and that's sad. I wouldn't
disagree that Linux killed it (because OpenServer wasn't free of course) and
they could have avoided that, look at Redhat, they're doing good it seems.

Whatever the outcome of this trial is going to be, we will all lose something,
even as insignificant as openserver is, it's a loss for the unix community. Only
unix-opponents (MSFT) wins regardless of the outcome, and that's sad.

About 10 years ago I was holding the OpenServer 5 cds in my hands and I felt
like this was a great operating system; and it was; the name "SCO"
sounded like a company with a bright future, just like "Sun
Microsystems", "BSDI" or "SGI" did. I respect that and
I respect the people whom have worked hard on building a product like
OpenServer.

It's sad that their name will only stay in the history books and their operating
systems in the computer museums, they could have done much better than this.

[ Reply to This | # ]

SCO INVESTS IN LINUXMALL.COM
Authored by: Anonymous on Tuesday, June 05 2007 @ 05:17 PM EDT
FOR IMMEDIATE RELEASE PRESS CONTACT
Monika Laud
SCO
Tel: 831-427-7421 monikal@sco.com

SCO INVESTS IN LINUXMALL.COM

Expands Strategic Involvement in Linux Community, Takes Stake in Leading
Linux Portal

SANTA CRUZ, CA (October 14, SCO (NASDAQ: SCOC) today announced
it has made a significant investment and formed a strategic partnership
with LinuxMall.com, the leading Linux e-commerce site and vendor-neutral
Linux portal.

As part of its ongoing strategy to support the Linux and Open Source
movements, SCO along with Hambrecht & Quist have committed to a substantial
investment program, aimed at allowing LinuxMall.com to dramatically
increase their growth. As a result of this investment, SCO becomes the
largest external investor and will hold a seat on the board of WGS, Inc.,
the parent company to LinuxMall.com.

"SCO has a long history in the Open Systems and Open Source
movements,"
said Doug Michels, president and CEO of SCO. "We have been distributing
Open Source offerings for over five years as part of our product
line. LinuxMall.com is a fast-growing company with a very compelling
business model. The LinuxMall.com opportunity provides SCO with a way to
pursue new business opportunities in the Linux marketplace with a partner
that is distribution neutral."

"We're thrilled to be working with SCO. Doug Michels and I have been in
contact for many years and I believe that SCO is a perfect partner for a
company like LinuxMall.com," said Mark Bolzern, CEO of LinuxMall.com.
"First, SCO's industry and technical experience are very valuable
resources
for us. Secondly, they are fully committed to the Linux
Community. LinuxMall.com will remain independent, based on the same
Community-centered ideals that have made us the number one Linux E-Commerce
site and portal for Linux."

As a corporate sponsor of Linux International, SCO is a strong proponent of
the Open Source movement, citing it as a driving force for innovation. Over
the years, SCO has contributed source code to the movement with lxrun and
OpenSAR, and currently offers a free Open Source Software Supplement CD
that includes many Open Source technologies. Most recently, SCO announced a
comprehensive set of Linux and Open Source-related professional
services. See www.sco.com/linux for more on SCO's Linux and Open Source
activity.


http://lwn.net/1999/1014/a/sco-linuxmall.html

[ Reply to This | # ]

Santa Cruz Was in the Linux Business, Not Just Caldera
Authored by: Anonymous on Tuesday, June 05 2007 @ 06:11 PM EDT
misinformation ... hmm ... is that legalese for LIES?

[ Reply to This | # ]

Santa Cruz was Definitely in the "Linux Business"
Authored by: Anonymous on Tuesday, June 05 2007 @ 06:56 PM EDT
Note that all references to SCO in this message are to the original Santa Cruz Organisation, not the later Caldera/SCOG. This is important to keep in mind, in order to understand the involvement of the original Santa Cruz Organisation in Linux.

    The Professional Services Angle
Santa Cruz was not a Linux distributor, but they provided "professional services" to people who wanted to run Linux systems. This is in 1999 and 2000. Notice that one of the companies they are supporting is Caldera.

SCO and Caldera Systems Extend SCO Professional Services to Caldera Customers
(March 13, 2000) - SCO (NASDAQ: SCOC) and Caldera Systems, the Linux for eBusiness company, today announced an agreement to offer SCO Professional Services to Caldera customers, worldwide. The latest agreement expands the scope of the SCO Professional Services Division, who now offer specific professional services packages for three top Linux distributors. The SCO Professional Services offerings are designed to help Caldera customers and resellers with planning, installation, configuration, and deployment of Caldera OpenLinux systems.

SCO and TurboLinux Announce Worldwide Professional Services Initiative
(October 26, 1999) ... Under the initiative, TurboLinux will offer their customers Linux Professional Consulting Services from SCO. SCO's Professional Services organization will support TurboLinux customers in planning, cost analysis and deployment of their TurboLinux systems.

    Santa Cruz Thinks About Buying a Distro
However, according to ZDNet Santa Cruz were considering getting into Linux even more deeply by buying Caldera.
29 Nov 1999 18:14 GMT
Both SCO (The Santa Cruz Operation) and Sun are looking at either Caldera Systems or TurboLinux, sources say. Sun and SCO both declined to comment about possible Linux deals. But even as they eye the open-source waters, it's unclear whether SCO and Sun will take the Linux acquisition plunge because of their respective ties to Unix.
It wasn't a popular idea with everyone at Santa Cruz though.
In SCO's case, there's considerable resentment in some circles toward Linux. As one SCO employee puts it, "we work our butts off for years on OpenServer and UnixWare and then we're supposed to make nice with these guys? Forget that."
Although others seemed to think that Linux was the direction they should be taking their company in.
Bad feelings aside, SCO has been making nice with Linux for some time now. Besides being a member of Linux International, SCO has invested in LinuxMall, a leading direct vendor. In August, David Taylor, SCO's VP of professional services, launched the SCO Linux and open source professional service team. The group provides Linux audit and deployment services. SCO also is working hand-in-glove with TurboLinux, marketing Linux with SCO's professional services.

The results look promising. SCO's Q4 revenue was a record $58m (£35m) and the company's stock has climbed from $3 to $13 over the last several months. "We're really doing well because Linux has made Unix popular," says one SCO source. "Our Linux moves have bought us credibility."

But for how long? If low-cost Linux continues to gain momentum on Intel servers, it could injure SCO's Unix sales. And if SCO buys a Linux player, the company risks cannibalising its revenue stream even faster.

    Caldera Launches their IPO

Caldera now launches their IPO and investors are paying large premiums for Linux distributors. Buying Caldera now would become much more expensive for Santa Cruz. Rather ominously for Caldera's future investors, their year over year gross revenue is flat. Double or triple digit growth rates would have been more reasonable for a company going public. It appears that Caldera's financial problems have already started, although it is masked by an influx of cash from investors.

02 Mar 2000 15:01 GMT Caldera Systems, one of the tastiest looking dishes on the Linux menu, will finally go public on Nasdaq on 13 March under the CALD symbol.

According to the company's SEC S-1/A amended initial registration statement, the stock's IPO price should be between $7 and $9 (£4 and £5) a share. Based on the history of previous Linux IPOs, that number could double days before the actual IPO. ...

Although Caldera only saw a year-over-year $15,000 (£9,300) increase in gross revenue for the quarter ending on 31 January 2000, sources close to the company claim that its e-commerce approach and strong reseller program are doing well.

In the spring of 2000, Santa Cruz becomes a charter member of the Free Standards Group, with the objective of promoting the use of Linux. This would help their professional services business, and also help in their sale of proprietary software such as the Tarantella product.

SANTA CRUZ, CA (May 10, 2000) - The Santa Cruz Operation, Inc. (SCO) announced today it has become a charter member of the Free Standards Group, an assembly of industry-leading companies driving to establish the Linux Standard Base (LSB). SCO has been involved since late 1999 in an effort to standardize Linux. ...

"The establishment of a single Linux standard will be incredible and will help the Tarantella Division as it enters the Linux marketplace with products like Tarantella Express," said Mike Orr, president of the Tarantella Division at SCO. "LSB would also help SCO's Server Software Division by increasing Linux compatibility with SCO operating platforms. Finally, the SCO Professional Services Division would benefit by offering consulting services for LSB compliant Linux distributions. In the grand scheme of things, ISVs will reap huge benefits from a single Linux standard, which will increase the total number of applications available for LSB compliant Linux platforms. Overall, this will strengthen the power of both UNIX and Linux on Intel and increase the value of all platforms to the end user."

    An Investment, Followed by Reversal of Course

It also appears that by 2000 though Santa Cruz had actually invested in. Caldera

Tue, 18 Apr 2000 15:15:52 GMT About Linux and SCO Open Source
Over the last year, SCO has expanded its strategic business opportunities in the Linux and Open Source markets. SCO has announced an alliance and investment in LinuxMall.com and a strategic business relationship with TurboLinux. Most recently, SCO announced that it has taken an equity position in Caldera Systems, Inc. Last year, SCO announced a comprehensive set of Linux and Open Source-related professional services.
However, by August of 2000, it was Caldera who was buying parts of SCO.
OREM, Utah - August 2, 2000 - Caldera Systems, Inc., (Nasdaq:CALD), a "Linux for Business" leader and The Santa Cruz Operation, Inc., (SCO) (Nasdaq:SCOC), the world's leading provider of UNIX operating systems, today announced that Caldera Systems has entered into an agreement to acquire the SCO Server Software Division and the Professional Services Division.
At this point, Santa Cruz was still retaining the "IP" and Caldera was just getting distribution rights for OpenServer. With hindsight though we can see that Santa Cruz was already starting their exit from the Unix business.

By spring of 2001, Caldera has bought out Santa Cruz's remaining Unix interests.

Caldera Completes Acquisition Of Two SCO Divisions; Becomes Largest Linux Company In The World With Global Services/Support
OREM, Utah--May 7, 2001-- Caldera Systems Inc. (Nasdaq: CALD) Monday announced its completion of the acquisition of The Santa Cruz Operation Inc. (SCO) (Nasdaq: SCOC) Server Software and Professional Services divisions, UnixWare and OpenServer technologies.
    The Time Line

So the time-line for the above seemed to be:

  • Fall of 1999 to spring of 2000, Santa Cruz were doing deals with second tier Linux vendors to provide "professional services" oriented around Linux.
  • It is worth noting that "professional services" (as opposed to running a distro) is also one of the things that IBM does to make money from Linux.
  • Also in fall of 1999, Santa Cruz were seriously thinking about buying a second tier Linux distributor (Caldera or TurboLinux).
  • It is also worth noting that buying an existing commercial Linux distro to provide a transition from an obsolete proprietary OS to an open source future is the strategy that Novell later adopted.
  • In the spring of 2000, Caldera launched their IPO (stock offering). At this point, a buyout by Santa Cruz would become much more difficult and expensive.
  • In the spring of 2000, Santa Cruz became a charter member of the Free Standards Group, with the objective of "establish(ing) the Linux Standard Base (LSB)".
  • By late summer of 2000, Santa Cruz seemed to be having second thoughts, and began the process of selling off their Unix business to Caldera (the company they had previously considered buying).
  • By spring of 2001, Caldera had bought out Santa Cruz's remaining interests in Unix altogether and announced their "Unifying UNIX with Linux for business" strategy.
    • Conclusion

    So it appears that the Santa Cruz Organisation was already dabbling in Linux before their connection with Caldera. Indeed they seem to have begun their association with Caldera through their Linux business.

    It seems that Santa Cruz's original plan for dealing with the rise of Linux and the decline of their own proprietary Unix OS was more or less the same as the one that Novell later adopted to deal with the decline of Netware. That is, buy a Linux distro and try to hang on to your customer base while you transition them to Linux. If so, it was a good plan provided they could buy a good distro at a reasonable price. While the actual Linux software might cost nothing, a Linux distro business requires a good service organisation and a satisfied customer community. Neither of these are easy to create.

    It seems though that unlike Novell, Santa Cruz drew back at the last minute and decided to simply exit the OS business altogether (and then later to sell the remainder of themselves to SUN). In retrospect it may have been the wisest decision. Caldera were one of the early commercial Linux distros, but they were weak on customer relations and "building community", both of which have proven critical to having a successful Linux business. It remains to be seen whether Novell have learned this lesson as well.

    The SCO saga isn't over yet, but the final conclusion to it is in sight, even if the details are still somewhat hazy. A possible conclusion could be for the SCO Unix business ending up back in Novell's hands again, and with OpenServer and Unixware customers being gradually eased onto Suse Linux with lots of hand holding and support from Novell. It remains to be seen if Novell can succeed at this where Santa Cruz and Caldera failed.

    [ Reply to This | # ]

    Deleting history
    Authored by: Anonymous on Wednesday, June 06 2007 @ 12:14 AM EDT
    Good they can't delete history, and what's on the Internet... at least for now
    it can't be deleted easily.
    Not that they wouldn't want to, and the governments of certain
    democracy-deprived countries would probably love some of those records
    dissappearance powers.

    If you can't delete history, you make your best to rewrite history. Sounds
    familiar ?
    Poison the river, so the little guys can't tell disinformation from information.
    Bend the law to suit you better, and call for a more balanced view taking
    account of all available information.

    It's exactly what SCO, Microsoft and the latest crop of democracy-lacking
    politicians are getting better at.

    (actually SCO have only *tried* to, they're too desperate, too dishonest and too
    ignorant to have a chance of success, even today, and it's hard to think they
    will ever have any more favourable start conditions than they had early on their
    game)

    Microsoft is different, of course, if only because of its size and money, but
    also because of their culture of "competitiveness". (that's why Paul
    Graham's grandiosity can be dangerous when claiming the beast is irrelevant)

    They're certain to keep us entertained deconstructing their charades and digging
    every corner of history, for years to come.
    It's the price of liberty, but it's work well worth doing.

    We're ready, keep the charades coming, you softies.

    [ Reply to This | # ]

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